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I bought a cheap NB8A for my daughter. Has 330,000km on it but seemed to run nicely.

She's been learning in it for 6 months, but in the last few weeks its started choofing smoke out the exhaust and using more oil than fuel. Still runs OK though.

Looking for thoughts on rebuilding vs dropping a used replacement motor in. My main concern is that these motors are now a minimum of 16 years old and find a good used could be difficult.

Also any advice on who to go to in Melbourne for either a used motor or to do a rebuild.

Have you you checked the pcv valve and other common causes of blowing smoke?
Could be a $10 fix if yoire lucky.

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Exactly what I was thinking. $10 part from Repco. One minute job. The Repco counter staff would probably do it in the carpark for you. It's gotta be worth a try seeing that you'd be advised to replace it when you swap in a new engine anyway.

If it turns out to be the motor, you'd be better going with a good used one. I broke my original motor at Lakeside in late 2014, sent the car to Automotive Plus and got them to put a mid 100k vintage used motor in it (with all the seals, gaskets, belts and thermostat all new). Plus a lightened flywheel...and heavy duty clutch. As you do. I nicked off to Hawaii for two weeks and came back, paid, got in the little fella and drove home. He's run like a train since.